Kohl's Q2 has ups and downs
Retail Editor 1 -- Home Textiles Today, August 15, 2013
Menomonee Falls, Wis. - Sales grew slightly and comps turned positive but net income declined, resulting in a mixed bag for Kohl's Corporation in its second quarter, ended August 3.
Net income was down 4% to $231 million, but earnings per share rose 4% to $1.04.
Sales also showed improvement, increasing 2.0% to $4.3 billion, and comps were up 0.9% - a slight but noteworthy improvement over the year ago period's 2.7% decline.
Year to date, net income was down 4% to $378 million while earnings per share increased 4% to $1.70.
Sales for the first half were almost flat - up 0.5% to $8.488 billion from $8.447 billion. Comps, too, were essentially flat - dipping a slight 0.5%, versus last year's 1.3% decline.
"We are pleased with our progress in the second quarter," said Kevin Mansell, chairman, president and ceo. "Sales improved significantly over the first quarter and our gross margin improved over last year. Expenses were well-managed and we ended the quarter with inventory per store up mid-single digits while funding our e-commerce growth."
The company now operates 1,155 units in 49 states and expects to open three new stores and remodel 30 stores in the fall ahead of the holiday selling season.
The company has also lowered its annual earnings per share guidance from $4.15-$4.45 to $4.15-$4.35.